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Justice's wheels slowed as shutdown hits courts
Court Watch | 2013/10/14 20:20

The government shutdown is slowing the wheels of justice in federal courts by delaying civil cases, forcing prosecutors to operate with skeleton staffs and raising uncertainty about the system's immediate future if the stalemate continues past Thursday.

That's when federal courts officials expect the reserve funds they have been using since the Oct. 1 start of the shutdown will run out.

Criminal cases, which are required by law to go to a speedy trial, are still moving ahead, as are most bankruptcy cases and appeals. Civil cases and those in immigration court, however, are feeling the greatest impact from the shutdown.

"The Constitution tells us what we have to do and we can't control our workload. It walks in the door, whether we're funded or not funded," said U.S. District Court Chief Judge Loretta Preska in New York, who has put all civil cases except those already in trial on hold at the request of the U.S. Attorney there.

She said the nearly 450 district court employees that serve the New York metro area will report to work to keep criminal cases on track even if funds run out. Officials at courts based in San Francisco, Philadelphia and St. Louis, Mo., also say their employees will work.


PG&E starts pipeline shutdown under court order
Court Watch | 2013/10/07 17:16

Pacific Gas & Electric Co. says it will comply with a judge's order and shut down a natural gas pipeline after safety issues were raised.

The utility said Sunday it believes the pipeline is safe despite an engineer's email questioning the safety of the 83-year-old line's welds. PG&E said it could take until Tuesday to safely shut down the line and seamlessly switch its customers to another line.

A judge ordered the line shut down after San Carlos city officials discovered the email and declared a "state of emergency."

The email said PG&E's records incorrectly show the line containing a newer, more reliable weld than it actually has.

PG&E said state-of-the-art tests show the line is safe and that it was shutting the line only because of the court order.


Court: Right-to-work law applies to state workers
Court Watch | 2013/08/21 21:47

Michigan's right-to-work law applies to 35,000 state employees, a divided state appeals court ruled Thursday in the first major legal decision on the much-debated measure eight months after it passed.

Judges voted 2-1 to reject a lawsuit filed by unionized workers who make up more than two-thirds of all state employees. In a state with a heavier presence of organized labor than most, thousands of protesters came to the Capitol late last year as the Republican-backed measure won quick approval in a lame-duck session.

The law prohibits forcing public and private workers in Michigan to pay union dues or fees as a condition of employment, and applies to labor contracts extended or renewed after late March. It went to court after questions were raised whether it can affect state employees, since the Michigan Civil Service Commission, which sets compensation for state employees, has separate powers under the state constitution.

The court's majority said legislators have broad authority to pass laws dealing with conditions of "all" employment while the panel has narrow power to regulate conditions of civil service employment.

"In light of the First Amendment rights at stake, the Michigan Legislature has made the policy decision to settle the matter by giving all employees the right to choose," Judges Henry Saad and Pat Donofrio wrote, adding that legislators decided to "remove politics from public employment and to end all inquiry or debate about how public sector union fees are spent."

Dissenting Judge Elizabeth Gleicher said the court's decision strips the civil service panel of its "regulatory supremacy" clearly laid out in the constitution, which allows the four-member commission to regulate "all conditions of employment" for civil service workers.


Court bars tax preparer who inflated deductions
Court Watch | 2013/07/26 17:05

The U.S. Justice Department says a Charleston man prepared hundreds of tax returns that cheated the government out of $55 million.

A federal judge on Tuesday permanently barred Stacy Middleton from preparing federal tax returns for others.

Middleton had been preparing tax returns for more than a decade. Prosecutors say he and another man prepared returns that understated their clients' income tax liabilities and overstated deductions and credits.

From 2008 to 2011, authorities say the men prepared about 17,000 federal returns. Of the records examined by the Internal Revenue Service, more than 90 percent needed adjustments.

In all, the IRS estimates that the U.S. Treasury lost as much as $55 million in revenue.


SC high court overturns $11M defamation verdicts
Court Watch | 2013/07/05 15:18

South Carolina's high court has overturned $11 million in verdicts against a Charleston attorney accused of defaming a businessman by comparing him to television mobster Tony Soprano.

The state Supreme Court this week sent a civil case against Paul Hulsey back to Circuit Court, according to a report from The Post and Courier of Charleston.

Hulsey was sued several years ago by Charleston businessmen Lawton Limehouse Sr.

The attorney had previously sued Limehouse's company on behalf of day laborers, claiming staffing agency L&L Services made fake green cards and Social Security cards, exploited workers and failed to pay overtime.

"This is a blatant case of indentured servitude," Hulsey told the newspaper in 2004. "L&L Services took advantage of the complexity of the system. They have created a perfect racketeering system, just like Tony Soprano."

Authorities looked into Hulsey's allegations but didn't bring charges. The lawsuit was ultimately settled for $20,000, according to the high court's ruling.


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